AIMS Group acquires Jaring network, customer assets

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KUALA LUMPUR (July 24): Carrier-neutral data services provider, AIMS Group has secured the bid to acquire the data centre and network-related customer assets of Jaring Communications Sdn Bhd (Jaring).

In a statement today, AIMS said it would also attain the rights to Jaring’s IPv4 Addresses and all of Jaring’s existing customers related to Data Centre, Broadband and Access, Cloud and Managed Services.

It said the estimated total value of these unexpired contracts are over RM50 million.

AIMS Group chief operating officer Mohammad Azman said AIMS was awarded Jaring’s assets, based on a balance of many factors — in terms of price, product portfolio, experience and skilled resources — to fast track the necessary migrations between AIMS and the acquired Jaring operations.

He also highlighted that the data centre would also leverage its unique “carrier neutral’ position to ensure smooth migration of services for Jaring’s customers.

Azman drew example of the demise of country’s first Internet Service Provider (ISP) as a reality check on the current unhealthy state of the local data centre market.

“Just over the last few months, we have seen both Patimas and Jaring face liquidation and their customers facing operational risk and being forced to migrate their infrastructure to alternative service providers.

“This actually marks a worrying trend, which can be directly attributed to the high number of players in the market — that is forcing many services providers to move into a price war to attract customers,” he said.

He said that while the price wars may seem as benefitting end customers, it is both the service providers and their customers that will be suffering in the longer run.

“This imbalance caused by oversupply of space in the Malaysian data centre industry and depressed price levels is driving out some of the players, forcing some to shut down their operations.”

However, despite the cut throat situation, Azman said that with the right business model, strategic positioning and partnerships, AIMS Group would continue to display financial resilience and is well-positioned to continue growing its revenue and market share, as well as to expand its data centre footprint, both locally and within the region.